4.
Reforms to increase stability and growth Reforms on monetary and fiscal policy frameworks together with deregulations and pension reforms have created a stable economic and budgetary environment • Medium-term budgetary framework – Budgetary framework established in 1997 and strengthened in 2011… – ...targeting an average surplus of 1 per cent of GDP for the general Government over the business cycle with close monitoring of spending... – …ceiling for government spending decided each year in advance by the Parliament • The Swedish central bank – The Riksbank – has an independent standing with a price stability objective4 2012-05-07 Investor presentation

5.
Reforms to increase stability and growth cont’d Reforms on monetary and fiscal policy frameworks together with deregulations and pension reforms have created a stable economic and budgetary environment • Pension reform established – Pensions now linked to life-long income – Defined contributions as a complement – The new system is robust to changes in overall income growth and demographics • Deregulation of product markets – Telecom – Transportation – Electricity – Labour market reform5 2012-05-07 Investor presentation